Romania's sole sheet metal producer liberty Galati is preparing to resume operations after nearly seven months of inactivity following a failed sales process in which the asset was deemed overvalued and failed to attract buyers. After an unsuccessful process, the Romanian government intervened, declaring the company an operator of strategic economic interests and offering financial support measures aimed at stabilizing operations.
The decision allows the company to access government-backed funds through the National Guarantee Fund to cover the unpaid wages of nearly 3,000 employees, according to official statements and local media reports. Payment arrears have piled up after the company suspended much of its operations in recent months, leaving much of its workforce technically unemployed.
Preparations to resume operations at the Galati steel plant have reportedly begun, with market sources indicating any restart is likely to be gradual. Initial activity is expected to focus on rolling mills, primarily through tolling agreements. However, market sentiment remains cautious. Despite state intervention, liberty Galati is still considered a debtor to both the state and private counterparties. Combined with previous order failures and payment delays, this continues to put pressure on the company's credibility and raises doubts about its ability to secure new orders in the near future.
"Given previous problems with unpaid obligations and operational glitches, it remains unclear how quickly the company will be able to regain market confidence and attract new orders," a regional source told SteelOrbis.
